China Overseas Land & Investment Ltd (00688) - Comprehensive analysis
China Overseas Land & Investment (COLI), with its significant presence in Tier 1 and Tier 2 cities in China, is well-positioned to capitalize on the ongoing recovery in homebuyer sentiment. We anticipate that demand for residential properties in wealthier cities will prove to be more resilient, resulting in stronger contracted sales growth for COLI compared to its smaller competitors. Furthermore, we believe that high average selling prices, combined with effective cost control measures, will allow COLI to sustain healthy profit margins and a solid balance sheet over the long term. In our opinion, investors have not fully recognized COLI's potential for consistent top-line growth and margin enhancement, as the company continues to build a strong land bank through acquisitions in major cities.
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